Profits at Dublin-headquartered fruit and vegetable giant Dole faced a 14 per cent hit in the second quarter over “fruit sourcing costs”, the company’s latest quarterly report said.
New York-listed Dole, established in 2021, was created following the merger of Dublin-based Fyffes spin-out Total Produce and Dole Food Company in the US.
The group warned in May that the conflict in the Middle East could feed through to higher costs in the second quarter.
In the three-month period, revenues rose 2.9 per cent to $2.5 billion (€2.2 billion), but earnings before interest, taxes, depreciation, and amortisation (Ebita) declined from $137.1 million the previous year to $116.8 million.
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The company said the fall in profits was “primarily due to higher cost of sales which were impacted by higher fruit sourcing costs in the fresh fruit segment”.
It added that the hit to profits was partially offset by good performance in its diversified fresh produce segment in American markets and the rest of the world outside Europe.
The report also noted the company completed the sale of a port in Ecuador for $95 million following the end of the quarter. In recent weeks, Dole also confirmed the acquisition of Greenfood Fresh Produce in Sweden.
Dole executive chairman Carl McCann said the sale of the South American port would help support its investment in growth opportunities, including recent acquisitions in Europe, the Middle East, and Africa (EMEA).
“We are pleased to deliver a second quarter result in line with our expectations. The quarter once again demonstrated the resilience of our diversified business model and our ability to navigate a challenging operating environment as we target full-year adjusted Ebita of approximately $400 million for 2026,” he said.
The company added that fuel and shipping costs “remain elevated” due to geopolitical developments, but some of the “sharp cost increases experienced during the second quarter appear to be moderating”.
During the quarter, Dole’s fresh fruit segment, which specialises in banana and pineapple sales, recorded sales of $972.8 million.
Ebita in this unit fell 31 per cent over shipping and fuel cost pressures. Costs linked to pineapple growing also rose due to adverse weather conditions.
Revenue from its diversified fresh produce, which sells avocados, kiwis, cherries and vegetables, in EMEA rose 1 per cent to $1.1 billion largely due to currency fluctuations, but Ebita fell 6.2 per cent to $45.9 million.
Its diversified fresh produce unit in the Americas and rest of world performed strongly, with revenue up 13.9 per cent to $440.1 million, and Ebita increasing by 34 per cent $20.6 million, due to higher volume sales of kiwis and avocados.
In the first six months of the year, Dole has spent $42.5 million on its farming operations in Latin America and distribution facilities and ripening rooms in Europe, with plans to invest a further $58 million by the end of 2026.
Last week, its board declared a cash dividend for the second quarter of $0.085 per share, the same level paid following first quarter results. This,will be paid in October.
